Max Verstappen dominated the Styrian Grand Prix from start to finish on Sunday, extending his lead at the top of the title race.
The Dutchman led every lap at the Red Bull Ring in Spielberg to take the chequered flag 35 seconds clear of Lewis Hamilton's Mercedes, with the Briton's teammate Valtteri Botas third.
Hamilton never threatened to challenge as Verstappen secured his second win in a week and fourth of the year, extending his lead in the drivers' championship from 12 points to 18 with Hamilton managing to secure a bonus point for fastest lap.
Verstappen's teammate Sergio Perez came in fourth while British driver Lando Norris was fifth for McLaren.
"You never know how it is going to end up but straight away I felt a good balance in the car," said Verstappen.
"It was good to manage the tyres from the start. They pitted one lap earlier than us, we reacted to that and we just kept on going, trying to hit our lap times – that worked really well today.
"That's really positive but we have to show it again next week. We'll definitely have a look as to what we can do better. I'm looking forward to next week.
"It's looking really good [for Red Bull]. We just have to keep pushing really hard and I'm confident we can do a really good job again."
Reigning world champion Hamilton admitted it was a mission impossible attempting to overtake the flying Red Bull after spending much of the race expressing frustration on his inability to cut into Verstappen's lead.
"It was a bit of a lonely race really," he said. "I was trying to keep up with those guys but, the speed they have – they've obviously made some big improvements. [It was] Impossible to keep up.
"They're faster, they're just faster. There's not a lot I can do in that respect. I've just got to keep trying to do the best I can do each weekend.
"We need to find some performance, we need an upgrade of some sort, we need to push. I don't know whether it's just the rear wing or whether it's the upgrade in the engine, but we've got to find some performance from somewhere."
Mercedes boss Toto Wollf insisted he was looking forward to analysing the race and finding a way for Hamilton to close the gap between him and Verstappen.
"It's been the first race in eight years where we were lacking pace," he said. "We have stopped developing for this year and we have to put our heads together and get the best out of that power unit.
"We are totally fired up. We were lacking pace but we will be doing the best we can and fighting back. We just didn't have the tools today to win – but the fight is not over."
After what has been a tense season of tight battles between Verstappen and Hamilton so far, there was very little to get the pulse racing in this race.
Ferrari's Charles Leclerc, though, did show tremendous fighting qualities to battle his way from last to a highly credible seventh-place finish, just behind teammate Carlos Sainz.
The Monegasque driver dropped to the back after damaging his front wing on the opening lap but produced a stirring attacking performance to work his way back through the crowd.
Completing the top 10 were Aston Martin's Lance Stroll in eighth, Fernando Alonso and Alpine taking ninth, one place ahead of AlphaTauri's Yuki Tsunoda.
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Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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